Address Obstacles Head On
In the first five steps, you created your complete capital raising plan and you started to meet with investors.
In most cases, raising money is more like a marathon than a sprint! Day in and day out, you will experience all kinds of highs and lows and you need to be prepared to address what comes up so that you can stay on track until you reach your goal.
You’ll need tools in your tool box that help you deal with
- meetings that don’t go well
- feelings of exhaustion and overwhelm
- objections from potential investors
Here are a few of my favorites:
1. Examine your beliefs about asking for money and growing your business.
Do a brain dump in your journal about all those beliefs and realize that there is very little, if any, truth to them. Once you drag them out into the light of day, you can loosen their grip on you by noticing how ridiculous most of them are!
2. Notice the positive side of the things that you don’t like about yourself.
Just about every “negative” characteristic has a positive side. For example, if you worry that you are too cautious and don’t jump on opportunities quickly enough, think about all the times that quality has actually helped you avoid mistakes. Reframe the negative description of that trait to focus on the positive. For example, say to yourself, “investors would be very lucky to invest in my company because I am such a careful steward of resources.”
3. Remember that investors find it very challenging to identify good opportunities.
Remind yourself every day that, for the right investors, what you’re offering to them is at least as valuable if not more so than what you’re asking for.
When talking to potential investors, start by asking them a lot of questions about what’s important to them. If it becomes clear that what you are offering is a good fit for what they’re looking for, make your offer.
4. Be willing to say no to the wrong investor.
If your gut tells you that a potential investor is not a good fit, listen to that. Do as much due diligence on potential investors as they do on you. And listen to both your head and your intuition (body, heart, spirit, gut . . . .) when deciding whether to accept an investment.
5. Remember that objections don’t always mean “no.”
In the world of sales, objections are often seen as a “buying signal.” In some cases, when investors ask difficult questions or make critical statements, it is a signal that they are interested but need to know more to feel comfortable. These questions and statements can be a cause for rejoicing – they are often a signal that you are getting closer to a yes!
Preparing to address obstacles is the sixth step in my Right Investor Formula.